Progress Energy Carolinas Again Seeking Renewable Energy Projects

Progress Energy Carolinas is again seeking proposals for potential renewable energy projects and alternative energy providers, as part of the company’s balanced strategy for meeting the growing energy needs of 1.4 million households and businesses in the Carolinas.

The company issued an open-ended request for renewable proposals in November 2007, and received a number of proposals for solar and biofuels energy projects. Although the request remains open, there are certain deadlines for submitting proposals to be considered in the company’s renewable resource planning, which is updated at regular intervals and shared with state regulators annually.

Progress Energy has signed contracts for two biomass projects and for three megawatt-sized solar photovoltaic plants, including one in western North Carolina, one near Raleigh and one near the coast. Additional solar proposals and projects involving the use of wood waste and agricultural byproducts are being evaluated. The company expects to purchase up to 1 million megawatt- hours of renewable energy when the initial phase of the state renewable standard takes effect in 2012.

The next deadline is Nov. 11, 2008, for renewable and alternative energy proposals to be considered in the company’s 2009 planning period. Bidders responding by Nov. 11 will be notified by March 2009 of Progress Energy Carolinas’ intent to enter further discussions.

Solar energy bids with capacity of 50 kilowatts or greater, and non-solar bids with capacity of 10 megawatts or less will be accepted. The latter category includes such technologies as wind, hydropower, geothermal, ocean current/wave energy, biomass (agricultural waste, spent pulping liquors, energy crops, etc.), landfill methane or hydrogen derived from a renewable resource.

Priority will be given to those proposals that are expected to be operational before 2011. The request for proposals, including information on the process for submission, can be viewed in its entirety at www.progress-energy.com/renewableRFP .

Investing in renewable energy technologies is a critical part of the company’s balanced solution for the future. The strategy also includes increased energy efficiency (with numerous programs and initiatives already under way) and state-of-the-art power plants.

“We continue to seek newer, cleaner ways to produce electricity, and renewable energy is a critical part or meeting that objective,” said Lloyd Yates, president and CEO-Progress Energy Carolinas. “We will continue to pursue renewable and alternative energy while ensuring that the system our customers depend on remains reliable, affordable and environmentally sound.”

Progress Energy worked with policy makers, environmental organizations, and industry and consumer groups to develop a comprehensive energy policy for North Carolina. The legislation, adopted in 2007, requires Progress Energy Carolinas and other investor-owned utilities in the state to provide 12.5 percent of energy sales in the state through renewable energy sources and energy efficiency by 2021.

Progress Energy Carolinas has developing a number of energy-efficiency programs and initiatives as part of the company’s goal of doubling systemwide energy efficiency to 2,000 megawatts in the next 10 years. In October, the N.C. Utilities Commission approved the first four new efficiency and demand- side management programs. The company expects to file additional programs in the coming weeks. (For more information on the company’s energy-efficiency programs and energy-saving tips, go to www.savethewatts.com.)

Progress Energy (NYSE: PGN), 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 includes two major utilities that serve more than 3.1 million customers in the Carolinas and Florida. 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. 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 growing areas of the country, and the company is pursuing a balanced approach to meeting the future energy needs of the region. That balance includes increased 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 www.progress-energy.com.