Progress Energy Announces Site of 2 Potential New Nuclear Plants in Florida.

[NNadir]

http://progress-energy.com/aboutenergy/poweringthefuture_florida/levy/levycounty_announcement.pdf

LEVY COUNTY, Fla. (Dec. 12, 2006) – Following a comprehensive evaluation of sites for a potential
nuclear power plant to meet Florida’s growing need for electricity, Progress Energy (NYSE: PGN) has
named a site in southern Levy County as the preferred location for construction of a plant – if the decision is made in future years to move forward. The Levy County site, approximately 3,000 acres (see attached map), is located about seven miles inland from the Gulf of Mexico and eight miles north of the company’s Crystal River Energy Complex in Citrus County, where Progress Energy operates a nuclear plant, as well as four coal-fueled units. The Levy County location was chosen based on an assessment of the major siting criteria: land, access to sufficient quantities of water (from the Gulf) and access to the electric transmission system, as well as an overall evaluation of environmental considerations. The proximity of the site to the company’s existing nuclear plant also would provide opportunities for efficiencies in shared support functions. In the coming months, the potential site will undergo further detailed assessment.

“Our commitment is to provide reliable and affordable energy to more than 1.6 million customers every day,” said Jeff Lyash, president and CEO of Progress Energy Florida. “We expect demand for electricity in our service territory to grow by more than 25 percent in the next decade, and today’s announcement is part of our long-term, balanced approach to meeting our customers’ future needs. “The site selection is not a decision to build a nuclear plant. That decision won’t be made for a year or longer. But it is a critical step in ensuring that nuclear power remains open and viable for future years. That flexibility is important to consumers throughout the region, because it translates to having the right resources at the right time, and that promotes continued electric system reliability and stable prices. If and when we build a new nuclear plant, it will be with our continued rock-solid commitment to safety and security and will incorporate state-of-the-art technology...”