Progress Energy subsidiary closes deal on Georgia power plants

RALEIGH, N.C., Feb. 15, 2002 — Progress Ventures Inc., a wholly owned subsidiary of Progress Energy, announced today that it has completed acquisition of two electric generating projects from LG&E Energy Corp., a subsidiary of Powergen plc, for a total cash consideration of $345 million.

The two plants, located in Georgia, will add nearly 1,100 megawatts (MW) to the Progress Ventures generation fleet. Progress Ventures participates in the wholesale energy business through fuel extraction, manufacturing and delivery; merchant generation; and energy marketing and trading.

The two projects consist of: (1) the Walton County project in Monroe, Ga., a 460 MW natural gas-fired plant placed in service in June 2001, and (2) the Washington County project near Sandersville, Ga., a planned 600 MW natural gas-fired plant expected to be operational by June 2003.

The transaction includes a power-purchase agreement with LG&E Energy Marketing Inc. for both projects through Dec. 31, 2004. In addition, Progress Ventures has assumed certain liabilities to facilitate buildout of the Washington County project.

Progress Energy is a Fortune 250 diversified holding company headquartered in Raleigh, N.C., with more than 20,000 megawatts of generation capacity and $8 billion in annual revenues.

The company’s diverse portfolio includes two major electric utility companies, CP&L and Florida Power, as well as NCNG, Progress Rail, Progress Telecom and Progress Ventures, which manages the company’s non-regulated energy operations including fuel extraction, manufacturing and delivery; merchant generation; and energy marketing and trading.

These companies serve 2.9 million customers across the Southeast, providing electricity, natural gas, energy services and broadband capacity. For more information about Progress Energy, visit the company’s Web site at http://www.progress-energy.com/.


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