1. Progress Energy Electric Transportation Update December 8, 2010 Christopher Gillman, Manager – Emerging Technologies

2. Overview ●It all begins with the value proposition ●Update of current initiatives ●Our electric transportation roadmap 2

3. It All Begins With The Value Proposition ●Societal benefits from the technology ▪Cost savings ▪Environmental ▪Energy independence ▪Economic development and job creation 3

4. ●As part of a national research effort with Ford, EPRI, Johnson Controls, SAFT, and partner utilities, Progress Energy is testing two Ford Escape PHEVs ●We will receive 12 Chevy Volts in 2011 for research and demonstration purposes ●Progress Energy will also showcase the Toyota Prius PHV technology as part of a US demonstration loan ●We will further acquire and integrate into our fleet additional technologies such as the Nissan LEAF, Ford Focus EV, etc. Update Of Current Initiatives: Plug-In Electric Vehicles 4

5. 5 Our Electric Transportation Roadmap: How is Progress Energy Supporting Electric Transportation? ●Progress Energy is partnering with our communities through Project Get Ready. ●Advanced vehicle technologies are an important part of our balanced solution. ●We are committed to developing the technology and infrastructure necessary to support the widespread usage of plug-in electric vehicles (PEVs). ●Progress Energy is investing now to ensure that there are few obstacles to consumers when PEVs arrive. Vision Position plug-in electric vehicles to strengthen the Balanced Solution and fulfill the EEI pledge. Help develop infrastructure and technology necessary to support the widespread use of plug-in electric vehicles to help our customers save money and reduce their impact on the environment.

6. Our Electric Transportation Roadmap: Opportunities and Challenges Customer Energy Independence Lower Energy Costs Environmental Benefits Jobs Utility Infrastructure Customer Support Education / Outreach Vehicle & Infrastructure incentives Fleet Planning Consumer Interface Integration/Interoperability System Requirements Load Impacts Rates / Billing Smart Grid/Standards Smart Charging Technology Value Component / System / Vehicle Manufacturers R&D Safety Consumer Marketing Price Incentives Battery Recycling Convenient Energy Incentives Regulation / Legislation Policy National Security Carbon/GHG Emissions CAFÉ/Fuel Economy Incentives/Tax Credits Mandates Public Good Economic Health Environmental Health Support Services and Goods R&D Education and Outreach Safety Permitting/Codes/Standards Planning & Development Charging Infrastructure; Residential, Private, Public Suppliers Contractors Charging Infrastructure EEI Pledge 6

7. Customer Energy Independence Lower Energy Costs Environmental Benefits Jobs Utility Infrastructure Customer Support Education / Outreach Vehicle & Infrastructure incentives Fleet Planning Consumer Interface Integration/Interoperability System Requirements Load Impacts Rates / Billing Smart Grid/Standards Smart Charging Technology Value Component / System / Vehicle Manufacturers R&D Safety Consumer Marketing Price Incentives Battery Recycling Convenient Energy Incentives Regulation / Legislation Policy National Security Carbon/GHG Emissions CAFÉ/Fuel Economy Incentives/Tax Credits Mandates Public Good Economic Health Environmental Health Support Services and Goods R&D Education and Outreach Safety Permitting/Codes/Standards Planning & Development Charging Infrastructure; Residential, Private, Public Suppliers Contractors Charging Infrastructure EEI Pledge 7 The Power of Pulling Together

8. Major Vehicle Original Equipment Manufacturers - Thomas-built for plug-in buses - John Deere for tractors and heavy equipment - Mac/Volvo for trucks -DesignLine for buses (Charlotte) -Avera Motors -Black Bay Technologies Vehicle Conversions - AVRC in Raleigh -Hybrid Technologies (Mooresville) -Li-ion Motors (Charlotte) -Foreign Affairs Auto (PHEV retrofit) -GatorMoto -PHEV Conversions (New Port Richey) Secari Motor Company World Class Exotics LLC Advanced electronics and chargers - Delta Electronics (RTP) -Cree (RTP) -Eaton Cutler-Hammer -Electronic System Services, Inc. (ESSI) -EVnetics -Patco Electronics Inc -Solitron Devices Inc -Sussex Semiconductor, Inc Smart metering and charging - Elster -Consert -Car Charging Group, Inc -eLutions, Inc -FALCO Electronics -NovaCharge -Gasoline Equipment Systems -K&K Electric -Palmer Electric -Siemens Energy, Inc. -TLC Engineering -Dyer, Riddle, Mills, and Precourt, Inc Grid hardware and charging infrastructure - ABB - Eaton - SPX (Charlotte) -Schneider Electric -AMP Systems -Car Charging Group, Inc -Matern Professional Engineering, Inc -Palmer Electric -RubeLab -SunWise Power Systems -One World Sustainable Batteries - Celgard (Charlotte) -Blue Nano (Huntersville) -SAFT -Alegna Innovations, LLC -Precision Tool and Engineering -Planar Energy -ENER1 -G4 Synergetics Corporation -US Lithium Energetics Home Builders Southern Traditions Development (Home tour stop for 2011 International Builders’ Show in Orlando. Intends to use EVSE as a one of the selling features in their green homes. Intend to demo PHEV or EV with home during show.) Our Electric Transportation Roadmap: The Power of Pulling Together 8

9. Our Electric Transportation Roadmap: The Edison Electric Institute (EEI) Pledge InfrastructureCustomer Support Customer and Stakeholder Education Vehicle and Infrastructure incentives Utility Fleets Address potential system grid impacts and help develop local charging infrastructure Implement a robust process to support PEV requests and streamline charging installs Collaborate with stakeholders to implement broad education program regarding PEVs Work with stakeholders to develop vehicle and infrastructure incentives Develop fleet acquisition and operations plan to incorporate plug-in drive technology Project Get Ready; establish infrastructure, OEM relationships Charging Station Pilot; deploy up to 600 charging stations 2011-13 EPRI; Program 18B – Non Road ET Market Development Program 18D – ET Infrastructure, Distribution System Impact Study Project Get Ready; installation & permitting process Progress Energy Website Progress Energy Call Center Leveraging non-regulated services; ECN (electrical contractor network) Project Get Ready; educate consumers EEI / EDTA / NPVI www.GoElectricDrive.com Progress Energy Website / Literature NCSU (STEP / STEM) Programs AEC; education forums Plug-in 2011 Conference Charging Station Pilot; Federal funding to help deploy charging infrastructure Expanding PEVs into existing Progress Energy’s Fleet; 2 Ford Escape PHEVs 6 Toyota Prius PHEVs 1 Deuco Plug-in Bucket Truck Planned additions; 12 Chevy Volts (GM grant) xx Nissan LEAFs xx Ford Focus 2 Ford F550 Plug-in Bucket Trucks 9

10. Progress Energy’s Next Steps ●2010 was a year of first steps ●2011 will be a year of research and demonstration ▪The need for more knowledge and understanding ▪Deploy charging stations ▪Acquire and fully integrate PEVs into our fleet ▪Collect and study data ▪Share what we learn ●Beyond 2011: Apply the knowledge and experience ▪Develop tools that will support electric transportation Standards Tariffs Incentives Services 10

11. Summary Focused initiatives ▪Value proposition ▪Stakeholder engagement ▪Education www.GoElectricDrive.com ▪Research and demonstration EVSE pilot Vehicle integration 11