SOUTHPORT, N.C., June 26 /PRNewswire-FirstCall/ -- Progress Energy (NYSE: PGN) today received new, extended operating licenses from the U.S. Nuclear Regulatory Commission (NRC) for its two Brunswick Plant nuclear reactors. These renewed licenses will allow both Brunswick Plant units to operate an additional 20 years beyond their original licenses. The NRC has also issued a press release on their renewal of the Brunswick Plant operating licenses: http:// www. nrc.gov/reading-rm/doc-collections/news/2006/06-085.html.

"This is a significant accomplishment that required several years of engineering analysis and environmental studies by the company and then nearly two years of examination and inspections by the NRC," said Brunswick Plant Vice President Jim Scarola. "The successful renewal of the Brunswick Plant operating licenses is also an excellent tribute to the many hardworking employees who have operated the plant safely and at high levels of performance over the past three decades.

"Renewed operating licenses mean Progress Energy can continue operating the Brunswick Plant until the mid-2030s in a manner that safely generates large amounts of reliable electrical energy for our customers while also protecting the environment," said Scarola. A 40-year operating license period for all U.S. nuclear power plants was originally established based on typical amortization time periods used by utilities for large capital investments. Brunswick Plant Unit 2 was licensed for commercial operation from 1974 to 2014, and Unit 1 from 1976 to 2016. The new extended operating licenses will allow Unit 2 to operate until December 27, 2034, and Unit 1 until September 8, 2036.

"Renewing the operating licenses of Brunswick's two reactors is beneficial to the communities we serve, our employees and our investors," said Scarola. "The Brunswick Plant safely provides nearly 25 percent of the energy used by our customers in the Carolinas each year, and does so economically while employing approximately 1,000 people full time."

A 2004 economic impact study conducted by two UNC Wilmington professors of economics highlighted many of the positive influences the Brunswick Plant has on the communities surrounding the power plant. This positive influence included the recognition that the Brunswick Plant's impact on gross economic output in four local counties was $901 million in 2003, which was 14 percent of the total regional output value for the area. The complete press release regarding this economic impact study is available on the company's Web site at: http://www.progress-energy. com/aboutus/news/ article.asp?id=10582.

"Progress Energy has invested approximately $265 million since 2001 on a variety of capital improvements that upgraded many plant systems and components at the Brunswick Plant," explained Scarola. "In fact, Brunswick Plant employees were recognized recently with the nuclear industry's highest award for completing a five-year 'extended power uprate' program that increased the plant's generating capacity by 244 megawatts. This power uprate project involved replacing many large plant components such as main transformers, cooling systems and high-pressure turbines with more modern and efficient equipment.

These upgrades will enhance long- term reliability of the power plant and have increased the output by an amount equivalent to energizing about 150,000 homes." The complete press release regarding this announcement is available on the Nuclear Energy Institute's Web site at: http://www.nei.org/ index.asp?catnum=4&catid=945.

The two renewed Brunswick operating licenses add to the other 42 U.S. nuclear reactors that have had their operating licenses extended by the NRC since 2000. This includes Progress Energy's Robinson Nuclear Plant located in South Carolina, which had its license extension approved in April 2004. License renewal applications are currently being developed for the company's Harris Plant in Wake County, N.C., and the Crystal River Plant in Florida.

The Brunswick Nuclear Plant's two boiling water reactors generate 1,875 megawatts of electricity, providing enough energy to power approximately one million average sized homes. It is located on 1,200 acres at the mouth of the Cape Fear River and is owned jointly by Progress Energy (81.67 percent) and the N.C. Eastern Municipal Power Agency (18.33 percent). The Brunswick units are operated as baseload generators of electricity, operating at full power continuously except when maintenance or refueling activities are needed. For more information, please call the Brunswick Plant Visitors Center at 910-457-6041.

Progress Energy, headquartered in Raleigh, N.C., is a Fortune 250 diversified energy company with more than 24,000 megawatts of generation capacity and $10 billion in annual revenues. The company's holdings include two electric utilities serving approximately 3 million customers in North Carolina, South Carolina and Florida. Progress Energy also includes 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.

SOURCE Progress Energy