Progress Energy Deploys PCI Asset Optimization Software.

NORMAN, Okla. -- Progress Energy (PGN), headquartered in Raleigh, N.C., has selected PCI software to optimize operations for both Carolina and Florida portfolios totaling 24,000 megawatts of generation. The PCI Generation Supply Management System(TM) will be used to optimize short-term unit commitment, evaluate off-system purchases and sales, forecast fuel consumption and emission, and project future earnings.

The PCI system deployed at Progress Energy includes PCI GenTrader(R) for short-term, mid-term and long-term portfolio optimization and risk assessment and PCI GenPortal(R) to provide workflow automation, data warehouse and enterprise-wide data communication. PCI GenTrader(R) has been used at Progress Energy for mid-term and long-term production costing and risk assessment since 2003. That implementation is now being expanded with PCI GenPortal(R) to automate the daily and weekly unit commitment process.

About Progress Energy

Headquartered in Raleigh, N.C., Progress Energy (NYSE:PGN), 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 2.8 million customers in North Carolina, South Carolina and Florida. Progress Energy also includes non-regulated operations covering competitive generation, energy marketing, natural gas exploration, fuel extraction, rail services and broadband capacity. For more information about Progress Energy, visit the company's Web site at http://www.progress-energy.com.

About Power Costs Inc.

Power Costs Inc. (PCI) is a leading provider of generation supply management and optimization software. PCI has grown steadily since its incorporation in 1992 by providing best of breed software, superior customer support and value-added services. PCI software is used to optimize nearly half of all generation in the United States and is recognized for delivering solutions that are critical for operations and for asset, financial and risk management. The company's client base includes AEP, PG&E, BTU, Progress Energy, Duke Energy, TXU, Reliant, FP&L, NorthWestern, LCRA, Seminole Electric, GRU, OG&E, San Antonio -- City Public Service, TexasGenco, Xcel, NIPSCO, Direct Energy, Tractebel, and Mirant. For additional information regarding PCI, visit the company's Web site at www.PowerCosts.com or call 405-447-6933.