IBEW Reaches Agreement with Progress Energy

Press Release

Source: Progress Energy Florida

Progress Energy, IBEW Reach Agreement on New Labor Contract
Wednesday February 1, 2:01 pm ET

ST. PETERSBURG, Fla., Feb. 1 /PRNewswire-FirstCall/ -- Progress Energy and its union employees have reached agreement on a new, three-year labor contract today.

Progress Energy's Florida craft employees are members of the International Brotherhood of Electrical Workers (IBEW). The IBEW represents approximately 2,100 craft employees, including dispatchers, meter readers, linemen, electricians and various power plant personnel.

The union membership voted Tuesday to ratify the company's contract offer, which had been unanimously recommended for acceptance by the union negotiating committee. The agreement was reached after nearly three months of continuous negotiations by the company and union negotiating teams.

"We are pleased that our employees in the bargaining unit have ratified the new contract. The agreement is a product of the professionalism and willingness to compromise by both parties," said Bill Johnson, Progress Energy president and chief operating officer. "This new agreement will enable us to meet and exceed our customers' expectations for reliability and service quality. The contract continues to provide an excellent wage and benefits program, one that is equitable across the company and competitive in the Southeast."

    The new contract is retroactive to Nov. 28, 2005, and provides for:

    - Pay increase of $0.25/hour for journeymen in the line department,
      substation construction and substation maintenance (effective before
      the across-the-board increase)
    - First-year increase of 3.25 percent
    - Second-year increase of 3.2 percent
    - Third-year increase of 3 percent

Among the many issues addressed in the new agreement are safety, work schedules for line crews, the provisions for meals and contracting out of work.

Progress Energy Florida, a subsidiary of Progress Energy (NYSE: PGN - News), provides electricity and related services to more than 1.5 million customers in Florida. The company is headquartered in St. Petersburg, Fla., and serves a territory encompassing over 20,000 square miles, including the cities of St. Petersburg and Clearwater, as well as the Central Florida area surrounding Orlando. Progress Energy is 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 www.progress-energy.com.

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Source: Progress Energy Florida