Progress Energy CEO Tells Shareholders Company Has Clear Strategy Focused on Two Utilities; Board of Directors Declares Dividend

Posted by admin

May 14, 2008

RALEIGH, N.C., May 14 /PRNewswire-FirstCall/ — Progress Energy Chairman, President and CEO Bill Johnson told shareholders today the company is focused on securing a bright future for its customers, shareholders and employees.
(Logo: )
“Our company has a clear strategic focus on our two strong electric utilities and the growth areas of the country they serve,” Johnson said. “We continue to excel in the fundamentals of this business. We have a balanced strategy for meeting growing demand and addressing climate change, and we are committed to achieving our financial objectives year after year. I am very confident and excited about our future.”
His comments came at Progress Energy’s annual meeting of shareholders today in Raleigh, Johnson’s first as the company’s CEO. He highlighted some of the company’s many successes from 2007:
— Delivered excellent service to its 3.1 million customers
— Increased the dividend for the 20th consecutive year
— Met the company’s ongoing earnings-per-share target
— Strengthened the company’s balance sheet and credit quality
— Announced the sale of the last of the company’s non-utility
subsidiaries, completing the transition back to its core business.

The company’s two utilities provide retail electric service in three growing states: North Carolina, South Carolina and Florida.
Johnson told shareholders that the industry and nation face new energy realities, which include global climate change, soaring fuel costs and the growing demand for electricity.
“Our company aims to meet these challenges and opportunities while maintaining a secure supply, reliable service and affordable prices. And we must do this in a way that continues to create value for our shareholders,” Johnson said.
He emphasized that the company is implementing a balanced solution for meeting the growing area’s energy needs, combining aggressive energy efficiency, innovative alternative energy and state-of-the-art power generation.
Progress Energy celebrates its 100th anniversary in July, a milestone few businesses ever achieve. Johnson noted that one way the company is celebrating is a “Summer of Service” initiative - challenging the company’s employees, collectively, to do 100 community service projects in 100 days this summer.
“I am proud of our record of safety, integrity and service, and how we’ve partnered and grown with the communities we serve,” Johnson said. “As always, our future is closely tied to the future of the areas we serve, which is one reason we work so hard to help our communities. I am grateful to the employees who built this company and to the investors who have placed their trust in us. We honor this past even as we now focus our efforts on securing the energy future for our company and customers.”
Directors elected
Shareholders elected the following 12 directors to serve one-year terms: James E. Bostic Jr. of Atlanta; David L. Burner of Darby, Mont.; Harris E. DeLoach Jr. of Hartsville, S.C.; William D. Johnson of Raleigh, N.C.; Robert W. Jones of Bedford, N.Y.; W. Steven Jones of Chapel Hill, N.C.; E. Marie McKee of Corning, N.Y.; John H. Mullin III of Brookneal, Va.; Charles W. Pryor Jr. of Lynchburg, Va.; Carlos A. Saladrigas of Miami; Theresa M. Stone of Boston; and Alfred C. Tollison Jr. of Marietta, Ga.
Dividend declaration
Progress Energy’s board of directors today declared a dividend on the company’s common stock. The quarterly dividend was declared at 61.5 cents per share, payable Aug. 1, 2008, to shareholders of record as of July 10, 2008. This represents an expected total annual dividend of $2.46 per share.
An audio webcast of the meeting is available at . The presentation consists of streaming audio and a downloadable slide presentation.
Progress Energy, 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 will observe its 100th anniversary in 2008. Progress Energy includes two major utilities that serve 3.1 million customers in the Carolinas and Florida. The company 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 strategy for a secure energy future. That balance includes aggressive 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 .
This release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The matters discussed in this document involve estimates, projections, goals, forecasts, assumptions, risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. Any forward-looking statement is based on information current as of the date of this document and speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made.

Progress Energy

Energy