Chairman’s Report

Bill JohnsonChairman, CEO & President

Progress Energy’sAnnual Meeting of Shareholders

May 14, 2008 – Raleigh, N.C.

5/14/2008

Caution: Forward-Looking Statements

This presentation includes some future-oriented

information that is subject to change. Many factors could

cause actual results to be materially different.

For more complete information, go to Progress Energy’s

most recent Form 10-K on our Web site:

progress-energy.com.

A Century of Service: 1908 - 2008

Carolina Power &

Light Company

was formed on

July 13, 1908

Raising a pole in downtown Raleigh in 1916

2007 Highlights

● Sustained operational excellence & safety leadership

● Achieved core ongoing earnings guidance

● Increased dividend for 20th consecutive year

● Completed transition to core utility business

● Strengthened balance sheet and credit ratings

● Ranked #16 in list of nation’s best corporate citizens

● Named to Dow Jones Sustainability Index 3rd straight year

Clear Strategic Focus on Two Electric Utilities with Strong Growth Prospects

Florida

North Carolina

South

Carolina

Service Area

• 1.4 million customers

Progress Energy Carolinas

• 1.7 million customers

Progress Energy Florida

Total net increase of 51,000 customers in 2007

Confronting New Energy Realities

Addressing climate change,

demand growth and rising costs

and creating

shareholder value

while maintaining

a secure supply, reliable service and

affordable prices

Balanced Solution Strategy

Potential Levy County Nuclear Project

Progressive Corporate Governance

● Integrity, accountability, independence

● All Board members elected annually and by majority vote

● Independent Board committees

● Independent auditors and compensation consultant

● Governance practices highly ranked

● Better than 67% of S&P 500*

● Better than 71% of utilities*

● Code of Ethics with training and rigorous enforcement

● Governance documents on Web site: progress-energy.com

* Recent report by RiskMetrics Group

Executive Compensation

● Independent Board committee and external consultant

● Total compensation and all elements benchmarked

● Compensation philosophy: 50th percentile of peer group

● High % of compensation tied to company performance

● Policies regularly evaluated against peer group and industry

● Changes in practices and programs:● Reworked long-term incentive

● Reduced long-term incentive percentages

● Reduced perquisites

Growth in Stock Price and Dividend

Sto

ck P

ric

e

1980-1993 stock prices adjusted for 1993 2-for-1 split

Div

iden

d

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

1980-1993 stock prices adjusted for 1993 2-for-1 split

Securing our Energy Future

● Clear strategic focus on the electric utility business

● Excelling in the fundamentals

● Balanced strategy to address climate and growth

● Achieving our financial objectives year after year

● Talented, motivated workforce

Q&A