Progress Energy Announces Leadership Changes

RALEIGH, N.C., Dec. 22 /PRNewswire-FirstCall/ -- Chairman and Chief Executive Officer Bob McGehee announced today several organizational changes affecting Progress Energy, Inc.'s (PGN) Power Operations and Diversified Operations groups and the company's Progress Ventures subsidiary.

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"We are constantly striving to position ourselves for long-term success and to ensure we are using best practices that allow us to be a leader in our industry," said McGehee. "These changes within our leadership team will make us a stronger company and better prepare us for the key tasks ahead of us in the coming years."

Mark Mulhern, president - Progress Energy Ventures, Inc. will now report directly to Bob McGehee. Mulhern previously reported to Peter Scott, president of the Progress Energy Service Company and chief financial officer for Progress Energy, Inc. Mulhern was recently also named to the company's senior management committee.

Paula Sims, currently vice president - Regulated Fuels, will become vice president - Fossil Generation. She replaces Jack Keenan, who has announced his departure from the company. The change is effective Jan. 9, 2006.

The Fossil Generation Department is responsible for managing fossil steam and hydroelectric generation in the Carolinas and Florida.

In her most recent role, Sims has led the procurement of oil, gas and coal, as well as fuel transportation for Progress Energy's fossil generation fleet. From 2002 to 2005, she served as chief operating officer for the Progress Fuels Corporation, where she managed unregulated natural gas and coal operations.

Sims will report to Mike Williams, senior vice president - Power Operations.

Effective Jan. 9, 2006, Bob Bazemore, currently vice president - Capital Planning, will become vice president of a new combined department - Regulated Fuels and Capital Planning. Bazemore will continue to report to Don Davis, executive vice president for Diversified Operations.

Prior to becoming vice president of Capital Planning in June of this year, Bazemore was controller and vice president - Accounting.

Joel Kamya, vice president - Technical Services and Construction, will lead a re-aligned department as vice president - Plant Construction. The department will focus on major construction projects, including those associated with emissions controls at the company's fossil plants in the Carolinas and Florida and construction of any new coal- or natural gas-fired generation.

Progress Energy , headquartered in Raleigh, N.C., is a Fortune 250 diversified energy company with more than 24,000 megawatts of generation capacity and $9 billion in annual revenues. The company's holdings include two electric utilities serving more than 2.9 million customers in North Carolina, South Carolina and Florida. Progress Energy also includes nonregulated operations covering merchant generation, energy marketing and natural gas exploration. Progress Energy was the 2005 recipient of 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 http://www.progress-energy.com/.