Diversified Businesses Drive Strong First Quarter Earnings for Progress Energy

Apr 24, 2001, 01:00 ET from Progress Energy, Inc.

    RALEIGH, N.C., April 24 /PRNewswire Interactive News Release/ --
     Progress Energy (NYSE:   PGN) today reported consolidated net income of
 $154.0 million, or $0.77 per share of common stock for the first quarter of
 2001.
     Progress Energy's diversified energy businesses, primarily the Energy
 Ventures business unit which manages fuel extraction, manufacturing and
 delivery; synthetic fuels; merchant generation; and energy marketing and
 trading contributed $0.21 per share.  In addition, its marketing and trading
 on behalf of the utility operating companies contributed $.10 to those
 companies' results.  Progress Energy's utility operating companies CP&L,
 Florida Power and NCNG recorded solid performance in the first quarter
 primarily due to customer growth, increased usage and realized merger
 synergies.
     "Progress Energy is off to a great start in 2001, providing a strong
 foundation to build on for the rest of the year," said William Cavanaugh,
 chairman, president and CEO, Progress Energy.  "While our utility operations
 delivered solid results as expected, our non-regulated assets are already
 proving to be key drivers for earnings growth moving forward.  We remain
 confident in our commitment to outstanding earnings growth.  The $3.25 to
 $3.35 earnings per share projection we made for 2001 is on target."
 
     Electric Operations - Regulated
 
     CP&L retail and wholesale electric operations contributed revenues of
 $821.6 million and earnings available for common stock of $120.1 million for
 the quarter compared to $779.9 and $85.3 million for the same period last
 year.  Florida Power retail and wholesale electric operations contributed
 revenues of $810.5 million and earnings available for common stock of $71.6
 million for the quarter compared to $625.3 million and $63.4 million for the
 same period last year.  Florida Power's revenues for the quarter included
 recognition of $63 million of revenues deferred during 2000 pursuant to a
 regulatory order.  The recognition of these revenues in this quarter was
 offset by amortization recorded on the Tiger Bay regulatory asset for the same
 amount and, therefore, did not affect net income.
     Total retail sales for the quarter increased 2 percent compared to the
 same period in 2000.  Strong customer growth and usage in both service areas
 led to a 7.2 percent increase in residential sales and a 5.2 percent increase
 in commercial sales.  Industrial sales fell 10.7 percent due primarily to
 weakness in the textile and chemical industries.
 
     Natural Gas Operations - Regulated
 
     North Carolina Natural Gas (NCNG) contributed $7.5 million to the first
 quarter earnings compared to $9.6 million in the same period last year.  The
 decrease was mainly due to reduced sales to certain large industrial customers
 with fuel switching capabilities.  Also in the first quarter, NCNG completed
 construction of the 84-mile Sandhills pipeline project that will transport
 natural gas from Iredell County to Progress Energy's Richmond generating site.
     Progress Energy is involved in a significant natural gas expansion project
 in eastern North Carolina.  The Eastern North Carolina Natural Gas Co. (ENCNG)
 is a partnership between the Albemarle Pamlico Economic Development
 Corporation (APEC) and Progress Energy to build an 850-mile natural gas
 pipeline system to serve 14 eastern N.C. counties.  ENCNG has begun surveying,
 design and environmental permitting for the first phase of the project.  The
 initial phase consists of about 140 miles of transmission (6- to 12-inch
 diameter) pipeline and about 75 miles of distribution (2- to 6-inch diameter)
 pipe.  Construction of the first phase is scheduled to begin in late 2001, and
 is scheduled to be completed by mid-summer 2002.  The entire project should be
 completed by late 2004.
 
     Diversified Businesses
 
     Energy and Other Related Businesses
     The Energy Ventures business unit recorded revenues of $186 million and
 net income of $42 million for the quarter.  Total synthetic fuel sales were
 2.8 million tons.
     In March, the company filed with the North Carolina Utilities Commission
 (NCUC) to transfer certificates granted for eleven generating units in
 Richmond and Rowan counties, N.C. from the regulated electric utility CP&L to
 Energy Ventures.  The company anticipates resolution of this during the
 summer.  Combined, these natural gas-fired units will be capable of producing
 approximately 1,780 MW of power.  Seven of these generating units are
 scheduled to be in operation this June.
     "Progress Energy intends to be a significant player in the fast-growing
 wholesale electricity market," said Cavanaugh.  "These plants are being built
 primarily to support wholesale sales and should be part of Energy Ventures,
 which is focused on growing the competitive generation business.  Including
 the units planned or under construction in Richmond and Rowan counties, we
 have approved sites and machines to put nearly 4,000 megawatts in service by
 2004."
 
     Other Diversified Businesses
     Progress Energy's other diversified businesses, Progress Telecom and SRS,
 reported an earnings loss of $0.01 for the quarter.
     Progress Telecom recorded revenues of $14.8 million, 67 percent higher
 than the first quarter of 2000.  Progress Telecom now provides seamless
 broadband service from Florida to Washington, D.C., and through partnerships
 can provide broadband service throughout North America and in all major
 markets in South America.
     SRS recorded revenues of $16 million, 16 percent higher than the first
 quarter of 2000.  In March, the company released two new web-based products
 developed to help clients better manage capital assets and capital plans.
 
     Corporate
 
     Corporate results include interest expense on holding company debt,
 goodwill amortization and intra-period tax allocation effects.  The company
 intends to sell its rail and barge businesses -- Progress Rail and MEMCO.
 These assets are treated as assets held for sale and therefore do not
 contribute to the company's reported earnings for the quarter.
     In February, Progress Energy issued $3.2 billion of debt ranging in
 maturity from three to 30 years.  The bonds replaced a majority of the $3.5
 billion commercial paper program used to finance the acquisition of Florida
 Progress in November 2000.
 
     This earnings announcement, as well as a package of detailed financial
 information, is available on the company's Web site at
 http://www.progress-energy.com.
     Progress Energy's conference call with the investment community will be
 held at 3:30 p.m. EDT (12:30 p.m. PDT) and will be hosted by Peter Scott,
 executive vice president and chief financial officer.  Investors, media and
 the public may listen to the conference call by calling 719-457-2621,
 confirmation code 699805.  Should you encounter problems, please contact
 Shannon Brooks at 919-546-2233.  A playback of the call will be available from
 6:00 p.m. EDT April 24, through midnight May 1, 2001.  To listen to the
 recorded call, dial 719-457-0820 and enter confirmation code 699805.
     A Webcast of the live conference call audio and slide presentation will be
 available at http://www.progress-energy.com.  The Webcast will be available in
 Windows Media and RealPlayer streaming-media formats.  The Webcast will be
 archived on the site for those unable to listen in real time.
     Members of the media are invited to listen to the conference call and then
 participate in a media-only question and answer session with Peter Scott
 starting at 4:30 p.m. EDT.  To participate in this session, please dial
 719-457-2625, confirmation code 551820.
     Progress Energy (NYSE:   PGN) is a Fortune 500 diversified holding company
 headquartered in Raleigh, N.C., with more than 19,000 megawatts of generation
 capacity and $7 billion in annual revenues.  The company's diverse portfolio
 includes two major electric utility companies, CP&L and Florida Power, as well
 as NCNG, SRS, Progress Telecom and an important new organization, Energy
 Ventures, which was created to manage wholesale energy marketing and trading,
 merchant generation, fuel properties, as well as barge and rail subsidiaries.
 These companies serve 2.8 million customers across the Southeast, providing
 electricity, natural gas, energy services and broadband capacity.  For more
 information about Progress Energy, visit the company's Web site at
 http://www.progress-energy.com/.
 
     This press release contains forward-looking statements within the meaning
 of the safe harbor provisions of the Private Securities Litigation Reform Act
 of 1995.  The forward-looking statements are subject to various risks and
 uncertainties.  Discussion of factors that could cause actual results to
 differ materially from management's projections, forecasts, estimates and
 expectations may include factors that are beyond the ability of the companies
 to control or estimate precisely.  Factors include, but are not limited to,
 actions in the financial markets, actions of regulatory agencies, weather
 conditions, economic conditions in the companies' service territories,
 fluctuations in energy-related commodity prices, conversion activity, other
 marketing efforts and other uncertainties.  Key factors affecting the
 synthetic fuel plant investment that could have a direct bearing on the
 company's ability to meet these projections include cash flows derived from
 the synthetic fuel plants, market acceptance of synthetic fuel, competition
 from competing products, impacts of environmental regulations on potential
 buyers, income tax issues related to synthetic fuel tax credits and other
 factors.  Other risk factors are detailed from time to time in the companies'
 SEC reports.
 
 
     Reported Earnings Variance Analysis
     First Quarter 2001 vs. 2000
 
                                   Florida       Regulated         Energy
     (Per share)         CP&L       Power         Natural         Ventures
                     (Electric)  (Electric)        Gas         Business Unit
 
 
     2000 earnings      0.56           --         0.06(E)
     Weather              --
     Customer growth
      and usage         0.04
     Other margin       0.04                     (0.01)
 
     Addition of
      FPC operations                 0.36(C)                         0.14
     O&M                0.09 (A)                 (0.01)
 
 
     Interest charges  (0.04)
     Goodwill
     Diversified businesses                                          0.07
 
     Share dilution    (0.14) (B)
 
     Income taxes -
      other             0.05
 
 
 
     Eliminations/other
 
     2001 earnings      0.60 (F)      0.36(F)    0.04                0.21
 
 
 
                              Other
     (Per share)           Diversified          Corporate        Consolidated
                           Businesses
     2000 earnings         (0.06)(E)                                 0.56
     Weather                                                           --
     Customer growth
      and usage                                                      0.04
     Other margin                                                    0.03
 
     Addition of FPC
      operations           (0.01)                (0.11)(G)           0.38
     O&M                                                             0.08
 
     Interest charges                            (0.18)             (0.22)
     Goodwill                                    (0.10)             (0.10)
     Diversified businesses 0.06                                     0.13
 
     Share dilution                                                 (0.14)(B)
     Income taxes - other                                            0.05 (D)
 
     Eliminations/other                          (0.04)(G)          (0.04)
     2001 earnings         (0.01)                (0.43)              0.77
 
     Regulated Natural Gas includes NCNG and Eastern NCNG
     Energy Ventures includes Electric Fuels, Progress Energy Ventures, and
     Monroe Power Other Diversified Businesses includes SRS and Progress
     Telecom Corporate includes eliminations, interest expense, goodwill and
     intra-period tax allocations
 
     (A)  .01 related to exclusion of NCNG, .04 related to Jan 2000 ice storm
     (B)  Related to issuance of 46.5 million common shares in connection with
          FPC acquisition in Dec 2000
     (C)  See Table 1
     (D)  Income statement line items are tax-effected at the statutory rate.
          Differences between the statutory and effective rates
          are reflected in "Income taxes-other".  The year-to-date variance
          primarily results from depreciation permanent differences.
     (E)  These companies were moved from a subsidiary of CP&L to Progress
          Energy in June 2000 with the holding company formation.
     (F)  Includes approximately .06 per share in CP&L and .04 per share in
          Florida Power related to energy marketing and trading.
     (G)  Includes intra-period tax allocation adjustment which will vary each
          quarter. These adjustments will  reverse for the year 2001.
 
 
     Table 1
 
 
                                                      Florida Power
                                           Reported Earnings Variance Analysis
                                               First Quarter 2001 vs. 2000
 
     2000 earnings                                         $0.64
     Weather                                                0.04
     Customer growth and usage                              0.02
     O&M                                                    0.02
     Share dilution                                        (0.32)
     Depreciation                                          (0.01)
     Other taxes                                           (0.02)
     Eliminations/other                                    (0.01)
     2001 earnings                                         $0.36
 
                               PROGRESS ENERGY, INC.
                UNAUDITED CONSOLIDATED INTERIM FINANCIAL INFORMATION
 
 
     STATEMENTS OF INCOME
                                                 Three Months Ended
                                                      March 31
     (In thousands except per share
      amounts)                                  2001            2000
 
     Operating Revenues
       Electric                           $1,632,048        $779,908
       Natural gas                           138,573          72,098
       Diversified businesses                137,469          25,134
          Total Operating Revenues         1,908,090         877,140
 
 
     Operating Expenses
       Fuel used in electric
        generation                           369,856         160,387
       Purchased power                       217,548          70,259
       Gas purchased for resale              109,593          43,898
       Other operation and
        maintenance                          295,097         198,227
       Depreciation and
        amortization                         313,164         132,489
       Taxes other than on income             99,646          37,334
       Harris Plant deferred costs,
        net                                    3,625           5,281
       Diversified businesses                189,706          44,155
 
           Total Operating Expenses        1,598,235         692,030
 
     Operating Income                        309,855         185,110
     Other Income (Expense)
       Interest income                         9,943           3,263
       Other, net                              2,923           3,553
 
           Total Other Income
            (Expense)                         12,866           6,816
 
     Income before Interest Charges
      and Income Taxes                       322,721         191,926
 
     Interest Charges
       Long-term debt                        126,443          50,072
       Other interest charges                 36,701           5,001
       Allowance for borrowed funds
        used during construction              (3,479)         (4,606)
 
          Net Interest Charges               159,665          50,467
 
     Income before Income Taxes              163,056         141,459
     Income Taxes                              9,053          56,198
     Net Income                             $154,003         $85,261
 
     Average Common Shares
      Outstanding                            199,799         153,054
     Basic Earnings per Common
      Share                                    $0.77           $0.56
     Diluted Earnings per Common
      Share                                    $0.77           $0.56
     Dividends Declared per Common
      Share                                   $0.530          $0.515
 
     This financial information should be read in conjunction with the
 Company's 2000 Annual Report to shareholders.  These statements have been
 prepared for the purpose of providing information concerning the Company and
 not in connection with any sale, offer for sale, or solicitation of an offer
 to buy any securities.
 
 
     Progress Energy, Inc.
     BALANCE SHEETS                                March 31        December 31
     (In thousands)                                  2001              2000
 
 
                    ASSETS
 
     Utility Plant
       Electric utility plant in service        $18,205,786       $18,124,036
       Gas utility plant in service                 382,936           378,464
       Accumulated depreciation                  (9,551,807)       (9,350,235)
 
              Utility plant in service,
               net                                9,036,915         9,152,265
       Held for future use                           16,302            16,302
       Construction work in progress              1,186,617         1,043,439
       Nuclear fuel, net of amortization            257,574           224,692
 
            Total Utility Plant, Net             10,497,408        10,436,698
 
 
     Current Assets
       Cash and cash equivalents                     83,293           101,296
       Accounts receivable                          652,057           925,911
       Taxes receivable                                  --                --
       Inventory                                    519,914           420,985
       Deferred fuel cost                            98,032           217,806
       Prepayments                                   16,594            50,040
       Assets Held for Sale, net                    782,763           747,745
       Other current assets                         183,598           192,347
 
              Total Current Assets                2,336,251         2,656,130
 
 
     Deferred Debits and Other Assets
       Income taxes recoverable through
        future rates                                213,639           208,997
       Harris Plant deferred costs                   41,850            44,813
       Unamortized debt expense                      38,971            38,771
       Nuclear decommissioning trust funds          813,072           811,998
       Diversified business property, net           747,173           729,662
       Miscellaneous other property and
        investments                                 602,163           510,935
       Goodwill, net                              3,605,862         3,652,429
       Other assets and deferred debits             813,619         1,000,579
 
              Total Deferred Debits and
               Other Assets                       6,876,349         6,998,184
 
              Total Assets                      $19,710,008       $20,091,012
 
        CAPITALIZATION AND LIABILITIES
 
     Capitalization
       Common stock equity                       $5,446,342        $5,424,201
       Preferred stock of subsidiary -
        redemption not required                      92,831            92,831
       Long-term debt, net                        9,201,322         5,890,099
 
              Total Capitalization               14,740,495        11,407,131
 
     Current Liabilities
       Current portion of long-term debt            202,000           184,037
       Accounts payable                             325,137           828,568
       Taxes accrued                                 23,535               932
       Interest accrued                             120,276           121,433
       Dividends declared                           107,825           107,645
       Short-term Obligations                       868,315         3,972,674
       Other current liabilities                    482,911           447,370
 
              Total Current Liabilities           2,129,999         5,662,659
 
     Deferred Credits and Other
      Liabilities
       Accumulated deferred income taxes          1,698,037         1,807,192
       Accumulated deferred investment tax
        credits                                     242,301           261,255
       Other liabilities and deferred
        credits                                     899,176           952,775
 
              Total Deferred Credits and
               Other Liabilities                  2,839,514         3,021,222
 
              Total Capitalization and
               Liabilities                      $19,710,008       $20,091,012
 
     SCHEDULES OF COMMON STOCK EQUITY
     (In thousands)
       Common stock (without par value,
        authorized 500,000,000, issued and
        outstanding                              $3,610,146        $3,608,902
        206,082,949 and 206,089,047 shares,
        respectively)
       Unearned ESOP common stock                  (119,759)         (127,211)
       Accumulated other comprehensive
        loss                                        (34,991)               --
       Retained earnings                          1,990,946         1,942,510
              Total Common Stock Equity          $5,446,342        $5,424,201
 
 
 
     Progress Energy, Inc.
     SUPPLEMENTAL  DATA                         Three Months Ended
                                                     March 31
                                               2001          2000 (A)
     Operating Revenues (in thousands)
     Electric
       Retail                                 $1,323,017       $634,667
       Wholesale                                 264,433        129,691
       Unbilled                                  (61,878)            --
       Miscellaneous revenue                     106,464         15,550
 
                 Total Electric                1,632,036        779,908
       Natural gas                               138,573         72,098
       Diversified businesses                    137,469         25,134
 
                 Total Operating Revenues     $1,908,078       $877,140
 
     Energy Sales
      Electric (millions of kWh)
         Retail
           Residential                             8,722          3,928
           Commercial                              5,274          2,556
           Industrial                              4,194          3,400
           Other retail                              962            341
               Total Retail                       19,152         10,225
         Unbilled                                 (1,168)           (65)
         Wholesale                                 4,779          3,708
                 Total Electric                   22,763         13,868
 
      Natural Gas (thousands of dt)               14,845         17,344
 
     Energy Supply (millions of kWh)
       Generated - steam                          11,913          7,460
                   nuclear                         7,138          5,664
                   hydro                              53            176
                   combustion turbines             1,137             34
       Purchased                                   3,674          1,032
                 Total Energy Supply
                  (Company Share)                 23,915         14,366
 
 
     Detail of Income Taxes (in thousands)
         Income tax expense (credit) -
          current                                $35,206        $89,837
          deferred                               (19,182)       (31,040)
          investment tax credit                   (6,971)        (2,599)
                    Total Income Tax
                     Expense                      $9,053        $56,198
 
 
 
     FINANCIAL STATISTICS
     Ratio of earnings to fixed charges             2.73           3.85
     Return on average common stock equity         13.20 %        11.31 %
     Book value per common share                  $27.24         $22.38
     Capitalization ratios
         Common stock equity                       36.95 %        47.55 %
         Preferred stock of subsidiary-
          redemption not required                   0.63           0.81
         Long-term debt, net                       62.42          51.64
 
                 Total                            100.00 %       100.00 %
 
     (A) Supplemental data does not include information related to Florida
 Progress for the three months ended March 31, 2000.
 
                      MAKE YOUR OPINION COUNT - Click Here
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SOURCE Progress Energy, Inc.
    RALEIGH, N.C., April 24 /PRNewswire Interactive News Release/ --
     Progress Energy (NYSE:   PGN) today reported consolidated net income of
 $154.0 million, or $0.77 per share of common stock for the first quarter of
 2001.
     Progress Energy's diversified energy businesses, primarily the Energy
 Ventures business unit which manages fuel extraction, manufacturing and
 delivery; synthetic fuels; merchant generation; and energy marketing and
 trading contributed $0.21 per share.  In addition, its marketing and trading
 on behalf of the utility operating companies contributed $.10 to those
 companies' results.  Progress Energy's utility operating companies CP&L,
 Florida Power and NCNG recorded solid performance in the first quarter
 primarily due to customer growth, increased usage and realized merger
 synergies.
     "Progress Energy is off to a great start in 2001, providing a strong
 foundation to build on for the rest of the year," said William Cavanaugh,
 chairman, president and CEO, Progress Energy.  "While our utility operations
 delivered solid results as expected, our non-regulated assets are already
 proving to be key drivers for earnings growth moving forward.  We remain
 confident in our commitment to outstanding earnings growth.  The $3.25 to
 $3.35 earnings per share projection we made for 2001 is on target."
 
     Electric Operations - Regulated
 
     CP&L retail and wholesale electric operations contributed revenues of
 $821.6 million and earnings available for common stock of $120.1 million for
 the quarter compared to $779.9 and $85.3 million for the same period last
 year.  Florida Power retail and wholesale electric operations contributed
 revenues of $810.5 million and earnings available for common stock of $71.6
 million for the quarter compared to $625.3 million and $63.4 million for the
 same period last year.  Florida Power's revenues for the quarter included
 recognition of $63 million of revenues deferred during 2000 pursuant to a
 regulatory order.  The recognition of these revenues in this quarter was
 offset by amortization recorded on the Tiger Bay regulatory asset for the same
 amount and, therefore, did not affect net income.
     Total retail sales for the quarter increased 2 percent compared to the
 same period in 2000.  Strong customer growth and usage in both service areas
 led to a 7.2 percent increase in residential sales and a 5.2 percent increase
 in commercial sales.  Industrial sales fell 10.7 percent due primarily to
 weakness in the textile and chemical industries.
 
     Natural Gas Operations - Regulated
 
     North Carolina Natural Gas (NCNG) contributed $7.5 million to the first
 quarter earnings compared to $9.6 million in the same period last year.  The
 decrease was mainly due to reduced sales to certain large industrial customers
 with fuel switching capabilities.  Also in the first quarter, NCNG completed
 construction of the 84-mile Sandhills pipeline project that will transport
 natural gas from Iredell County to Progress Energy's Richmond generating site.
     Progress Energy is involved in a significant natural gas expansion project
 in eastern North Carolina.  The Eastern North Carolina Natural Gas Co. (ENCNG)
 is a partnership between the Albemarle Pamlico Economic Development
 Corporation (APEC) and Progress Energy to build an 850-mile natural gas
 pipeline system to serve 14 eastern N.C. counties.  ENCNG has begun surveying,
 design and environmental permitting for the first phase of the project.  The
 initial phase consists of about 140 miles of transmission (6- to 12-inch
 diameter) pipeline and about 75 miles of distribution (2- to 6-inch diameter)
 pipe.  Construction of the first phase is scheduled to begin in late 2001, and
 is scheduled to be completed by mid-summer 2002.  The entire project should be
 completed by late 2004.
 
     Diversified Businesses
 
     Energy and Other Related Businesses
     The Energy Ventures business unit recorded revenues of $186 million and
 net income of $42 million for the quarter.  Total synthetic fuel sales were
 2.8 million tons.
     In March, the company filed with the North Carolina Utilities Commission
 (NCUC) to transfer certificates granted for eleven generating units in
 Richmond and Rowan counties, N.C. from the regulated electric utility CP&L to
 Energy Ventures.  The company anticipates resolution of this during the
 summer.  Combined, these natural gas-fired units will be capable of producing
 approximately 1,780 MW of power.  Seven of these generating units are
 scheduled to be in operation this June.
     "Progress Energy intends to be a significant player in the fast-growing
 wholesale electricity market," said Cavanaugh.  "These plants are being built
 primarily to support wholesale sales and should be part of Energy Ventures,
 which is focused on growing the competitive generation business.  Including
 the units planned or under construction in Richmond and Rowan counties, we
 have approved sites and machines to put nearly 4,000 megawatts in service by
 2004."
 
     Other Diversified Businesses
     Progress Energy's other diversified businesses, Progress Telecom and SRS,
 reported an earnings loss of $0.01 for the quarter.
     Progress Telecom recorded revenues of $14.8 million, 67 percent higher
 than the first quarter of 2000.  Progress Telecom now provides seamless
 broadband service from Florida to Washington, D.C., and through partnerships
 can provide broadband service throughout North America and in all major
 markets in South America.
     SRS recorded revenues of $16 million, 16 percent higher than the first
 quarter of 2000.  In March, the company released two new web-based products
 developed to help clients better manage capital assets and capital plans.
 
     Corporate
 
     Corporate results include interest expense on holding company debt,
 goodwill amortization and intra-period tax allocation effects.  The company
 intends to sell its rail and barge businesses -- Progress Rail and MEMCO.
 These assets are treated as assets held for sale and therefore do not
 contribute to the company's reported earnings for the quarter.
     In February, Progress Energy issued $3.2 billion of debt ranging in
 maturity from three to 30 years.  The bonds replaced a majority of the $3.5
 billion commercial paper program used to finance the acquisition of Florida
 Progress in November 2000.
 
     This earnings announcement, as well as a package of detailed financial
 information, is available on the company's Web site at
 http://www.progress-energy.com.
     Progress Energy's conference call with the investment community will be
 held at 3:30 p.m. EDT (12:30 p.m. PDT) and will be hosted by Peter Scott,
 executive vice president and chief financial officer.  Investors, media and
 the public may listen to the conference call by calling 719-457-2621,
 confirmation code 699805.  Should you encounter problems, please contact
 Shannon Brooks at 919-546-2233.  A playback of the call will be available from
 6:00 p.m. EDT April 24, through midnight May 1, 2001.  To listen to the
 recorded call, dial 719-457-0820 and enter confirmation code 699805.
     A Webcast of the live conference call audio and slide presentation will be
 available at http://www.progress-energy.com.  The Webcast will be available in
 Windows Media and RealPlayer streaming-media formats.  The Webcast will be
 archived on the site for those unable to listen in real time.
     Members of the media are invited to listen to the conference call and then
 participate in a media-only question and answer session with Peter Scott
 starting at 4:30 p.m. EDT.  To participate in this session, please dial
 719-457-2625, confirmation code 551820.
     Progress Energy (NYSE:   PGN) is a Fortune 500 diversified holding company
 headquartered in Raleigh, N.C., with more than 19,000 megawatts of generation
 capacity and $7 billion in annual revenues.  The company's diverse portfolio
 includes two major electric utility companies, CP&L and Florida Power, as well
 as NCNG, SRS, Progress Telecom and an important new organization, Energy
 Ventures, which was created to manage wholesale energy marketing and trading,
 merchant generation, fuel properties, as well as barge and rail subsidiaries.
 These companies serve 2.8 million customers across the Southeast, providing
 electricity, natural gas, energy services and broadband capacity.  For more
 information about Progress Energy, visit the company's Web site at
 http://www.progress-energy.com/.
 
     This press release contains forward-looking statements within the meaning
 of the safe harbor provisions of the Private Securities Litigation Reform Act
 of 1995.  The forward-looking statements are subject to various risks and
 uncertainties.  Discussion of factors that could cause actual results to
 differ materially from management's projections, forecasts, estimates and
 expectations may include factors that are beyond the ability of the companies
 to control or estimate precisely.  Factors include, but are not limited to,
 actions in the financial markets, actions of regulatory agencies, weather
 conditions, economic conditions in the companies' service territories,
 fluctuations in energy-related commodity prices, conversion activity, other
 marketing efforts and other uncertainties.  Key factors affecting the
 synthetic fuel plant investment that could have a direct bearing on the
 company's ability to meet these projections include cash flows derived from
 the synthetic fuel plants, market acceptance of synthetic fuel, competition
 from competing products, impacts of environmental regulations on potential
 buyers, income tax issues related to synthetic fuel tax credits and other
 factors.  Other risk factors are detailed from time to time in the companies'
 SEC reports.
 
 
     Reported Earnings Variance Analysis
     First Quarter 2001 vs. 2000
 
                                   Florida       Regulated         Energy
     (Per share)         CP&L       Power         Natural         Ventures
                     (Electric)  (Electric)        Gas         Business Unit
 
 
     2000 earnings      0.56           --         0.06(E)
     Weather              --
     Customer growth
      and usage         0.04
     Other margin       0.04                     (0.01)
 
     Addition of
      FPC operations                 0.36(C)                         0.14
     O&M                0.09 (A)                 (0.01)
 
 
     Interest charges  (0.04)
     Goodwill
     Diversified businesses                                          0.07
 
     Share dilution    (0.14) (B)
 
     Income taxes -
      other             0.05
 
 
 
     Eliminations/other
 
     2001 earnings      0.60 (F)      0.36(F)    0.04                0.21
 
 
 
                              Other
     (Per share)           Diversified          Corporate        Consolidated
                           Businesses
     2000 earnings         (0.06)(E)                                 0.56
     Weather                                                           --
     Customer growth
      and usage                                                      0.04
     Other margin                                                    0.03
 
     Addition of FPC
      operations           (0.01)                (0.11)(G)           0.38
     O&M                                                             0.08
 
     Interest charges                            (0.18)             (0.22)
     Goodwill                                    (0.10)             (0.10)
     Diversified businesses 0.06                                     0.13
 
     Share dilution                                                 (0.14)(B)
     Income taxes - other                                            0.05 (D)
 
     Eliminations/other                          (0.04)(G)          (0.04)
     2001 earnings         (0.01)                (0.43)              0.77
 
     Regulated Natural Gas includes NCNG and Eastern NCNG
     Energy Ventures includes Electric Fuels, Progress Energy Ventures, and
     Monroe Power Other Diversified Businesses includes SRS and Progress
     Telecom Corporate includes eliminations, interest expense, goodwill and
     intra-period tax allocations
 
     (A)  .01 related to exclusion of NCNG, .04 related to Jan 2000 ice storm
     (B)  Related to issuance of 46.5 million common shares in connection with
          FPC acquisition in Dec 2000
     (C)  See Table 1
     (D)  Income statement line items are tax-effected at the statutory rate.
          Differences between the statutory and effective rates
          are reflected in "Income taxes-other".  The year-to-date variance
          primarily results from depreciation permanent differences.
     (E)  These companies were moved from a subsidiary of CP&L to Progress
          Energy in June 2000 with the holding company formation.
     (F)  Includes approximately .06 per share in CP&L and .04 per share in
          Florida Power related to energy marketing and trading.
     (G)  Includes intra-period tax allocation adjustment which will vary each
          quarter. These adjustments will  reverse for the year 2001.
 
 
     Table 1
 
 
                                                      Florida Power
                                           Reported Earnings Variance Analysis
                                               First Quarter 2001 vs. 2000
 
     2000 earnings                                         $0.64
     Weather                                                0.04
     Customer growth and usage                              0.02
     O&M                                                    0.02
     Share dilution                                        (0.32)
     Depreciation                                          (0.01)
     Other taxes                                           (0.02)
     Eliminations/other                                    (0.01)
     2001 earnings                                         $0.36
 
                               PROGRESS ENERGY, INC.
                UNAUDITED CONSOLIDATED INTERIM FINANCIAL INFORMATION
 
 
     STATEMENTS OF INCOME
                                                 Three Months Ended
                                                      March 31
     (In thousands except per share
      amounts)                                  2001            2000
 
     Operating Revenues
       Electric                           $1,632,048        $779,908
       Natural gas                           138,573          72,098
       Diversified businesses                137,469          25,134
          Total Operating Revenues         1,908,090         877,140
 
 
     Operating Expenses
       Fuel used in electric
        generation                           369,856         160,387
       Purchased power                       217,548          70,259
       Gas purchased for resale              109,593          43,898
       Other operation and
        maintenance                          295,097         198,227
       Depreciation and
        amortization                         313,164         132,489
       Taxes other than on income             99,646          37,334
       Harris Plant deferred costs,
        net                                    3,625           5,281
       Diversified businesses                189,706          44,155
 
           Total Operating Expenses        1,598,235         692,030
 
     Operating Income                        309,855         185,110
     Other Income (Expense)
       Interest income                         9,943           3,263
       Other, net                              2,923           3,553
 
           Total Other Income
            (Expense)                         12,866           6,816
 
     Income before Interest Charges
      and Income Taxes                       322,721         191,926
 
     Interest Charges
       Long-term debt                        126,443          50,072
       Other interest charges                 36,701           5,001
       Allowance for borrowed funds
        used during construction              (3,479)         (4,606)
 
          Net Interest Charges               159,665          50,467
 
     Income before Income Taxes              163,056         141,459
     Income Taxes                              9,053          56,198
     Net Income                             $154,003         $85,261
 
     Average Common Shares
      Outstanding                            199,799         153,054
     Basic Earnings per Common
      Share                                    $0.77           $0.56
     Diluted Earnings per Common
      Share                                    $0.77           $0.56
     Dividends Declared per Common
      Share                                   $0.530          $0.515
 
     This financial information should be read in conjunction with the
 Company's 2000 Annual Report to shareholders.  These statements have been
 prepared for the purpose of providing information concerning the Company and
 not in connection with any sale, offer for sale, or solicitation of an offer
 to buy any securities.
 
 
     Progress Energy, Inc.
     BALANCE SHEETS                                March 31        December 31
     (In thousands)                                  2001              2000
 
 
                    ASSETS
 
     Utility Plant
       Electric utility plant in service        $18,205,786       $18,124,036
       Gas utility plant in service                 382,936           378,464
       Accumulated depreciation                  (9,551,807)       (9,350,235)
 
              Utility plant in service,
               net                                9,036,915         9,152,265
       Held for future use                           16,302            16,302
       Construction work in progress              1,186,617         1,043,439
       Nuclear fuel, net of amortization            257,574           224,692
 
            Total Utility Plant, Net             10,497,408        10,436,698
 
 
     Current Assets
       Cash and cash equivalents                     83,293           101,296
       Accounts receivable                          652,057           925,911
       Taxes receivable                                  --                --
       Inventory                                    519,914           420,985
       Deferred fuel cost                            98,032           217,806
       Prepayments                                   16,594            50,040
       Assets Held for Sale, net                    782,763           747,745
       Other current assets                         183,598           192,347
 
              Total Current Assets                2,336,251         2,656,130
 
 
     Deferred Debits and Other Assets
       Income taxes recoverable through
        future rates                                213,639           208,997
       Harris Plant deferred costs                   41,850            44,813
       Unamortized debt expense                      38,971            38,771
       Nuclear decommissioning trust funds          813,072           811,998
       Diversified business property, net           747,173           729,662
       Miscellaneous other property and
        investments                                 602,163           510,935
       Goodwill, net                              3,605,862         3,652,429
       Other assets and deferred debits             813,619         1,000,579
 
              Total Deferred Debits and
               Other Assets                       6,876,349         6,998,184
 
              Total Assets                      $19,710,008       $20,091,012
 
        CAPITALIZATION AND LIABILITIES
 
     Capitalization
       Common stock equity                       $5,446,342        $5,424,201
       Preferred stock of subsidiary -
        redemption not required                      92,831            92,831
       Long-term debt, net                        9,201,322         5,890,099
 
              Total Capitalization               14,740,495        11,407,131
 
     Current Liabilities
       Current portion of long-term debt            202,000           184,037
       Accounts payable                             325,137           828,568
       Taxes accrued                                 23,535               932
       Interest accrued                             120,276           121,433
       Dividends declared                           107,825           107,645
       Short-term Obligations                       868,315         3,972,674
       Other current liabilities                    482,911           447,370
 
              Total Current Liabilities           2,129,999         5,662,659
 
     Deferred Credits and Other
      Liabilities
       Accumulated deferred income taxes          1,698,037         1,807,192
       Accumulated deferred investment tax
        credits                                     242,301           261,255
       Other liabilities and deferred
        credits                                     899,176           952,775
 
              Total Deferred Credits and
               Other Liabilities                  2,839,514         3,021,222
 
              Total Capitalization and
               Liabilities                      $19,710,008       $20,091,012
 
     SCHEDULES OF COMMON STOCK EQUITY
     (In thousands)
       Common stock (without par value,
        authorized 500,000,000, issued and
        outstanding                              $3,610,146        $3,608,902
        206,082,949 and 206,089,047 shares,
        respectively)
       Unearned ESOP common stock                  (119,759)         (127,211)
       Accumulated other comprehensive
        loss                                        (34,991)               --
       Retained earnings                          1,990,946         1,942,510
              Total Common Stock Equity          $5,446,342        $5,424,201
 
 
 
     Progress Energy, Inc.
     SUPPLEMENTAL  DATA                         Three Months Ended
                                                     March 31
                                               2001          2000 (A)
     Operating Revenues (in thousands)
     Electric
       Retail                                 $1,323,017       $634,667
       Wholesale                                 264,433        129,691
       Unbilled                                  (61,878)            --
       Miscellaneous revenue                     106,464         15,550
 
                 Total Electric                1,632,036        779,908
       Natural gas                               138,573         72,098
       Diversified businesses                    137,469         25,134
 
                 Total Operating Revenues     $1,908,078       $877,140
 
     Energy Sales
      Electric (millions of kWh)
         Retail
           Residential                             8,722          3,928
           Commercial                              5,274          2,556
           Industrial                              4,194          3,400
           Other retail                              962            341
               Total Retail                       19,152         10,225
         Unbilled                                 (1,168)           (65)
         Wholesale                                 4,779          3,708
                 Total Electric                   22,763         13,868
 
      Natural Gas (thousands of dt)               14,845         17,344
 
     Energy Supply (millions of kWh)
       Generated - steam                          11,913          7,460
                   nuclear                         7,138          5,664
                   hydro                              53            176
                   combustion turbines             1,137             34
       Purchased                                   3,674          1,032
                 Total Energy Supply
                  (Company Share)                 23,915         14,366
 
 
     Detail of Income Taxes (in thousands)
         Income tax expense (credit) -
          current                                $35,206        $89,837
          deferred                               (19,182)       (31,040)
          investment tax credit                   (6,971)        (2,599)
                    Total Income Tax
                     Expense                      $9,053        $56,198
 
 
 
     FINANCIAL STATISTICS
     Ratio of earnings to fixed charges             2.73           3.85
     Return on average common stock equity         13.20 %        11.31 %
     Book value per common share                  $27.24         $22.38
     Capitalization ratios
         Common stock equity                       36.95 %        47.55 %
         Preferred stock of subsidiary-
          redemption not required                   0.63           0.81
         Long-term debt, net                       62.42          51.64
 
                 Total                            100.00 %       100.00 %
 
     (A) Supplemental data does not include information related to Florida
 Progress for the three months ended March 31, 2000.
 
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 SOURCE  Progress Energy, Inc.