Exhibit 99.1

[LOGO] Progress Energy

                                                         news release


        Progress Energy announces equity offering of 11 million shares


RALEIGH, NC (August 6, 2001) - Progress Energy (NYSE: PGN) announced today that
it plans to sell approximately 11 million shares of common stock. The offering
will be made pursuant to Progress Energy's shelf registration statement. The
offering is expected to conclude in mid-August.

The proceeds from the sale of these securities will be used to retire
outstanding commercial paper or other short-term debt that was issued to finance
the acquisition of Florida Progress Corporation and for general corporate
purposes.

The joint book-running managers for the offering are Merrill Lynch & Co. and
Salomon Smith Barney. The underwriters will also have a 30-day option to
purchase up to 1.65 million additional shares to cover any overallotment of
shares.

Progress Energy raised its 2001 earnings estimate last month when the company
announced second quarter earnings. The company reconfirmed that higher estimate
today. "Progress Energy is still on track to achieve earnings this year in the
$3.35-3.45 range," said William Cavanaugh, chairman, president and CEO of
Progress Energy. "We are confident that we will still meet our new earnings
range, even with this stock sale."

This offering will be made by a prospectus only.  A copy of the prospectus for
the offering may be obtained from the offices of the underwriters.

This press release does not constitute an offer to sell or a solicitation of an
offer to buy, nor shall there be any sale of these securities in any state or
jurisdiction in which such an offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities law of any such
state or jurisdiction.

Progress Energy (NYSE: PGN) is a diversified holding company headquartered in
Raleigh, N.C., with more than 20,000 megawatts of generation capacity and $7
billion in annual revenues. The company's diverse portfolio includes two major
electric utility companies, CP&L and Florida Power, as well as NCNG, SRS,
Progress Rail, Progress Telecom and an important new organization, Energy
Ventures, which was created to manage fuel extraction, manufacturing and
delivery; merchant generation; and energy marketing and trading. These companies
serve 2.8 million


customers across the Southeast, providing electricity, natural gas, energy
services and broadband capacity.

This press release contains forward-looking statements within the meaning of the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
The forward-looking statements are subject to various risks and uncertainties.
Discussion of factors that could cause actual results to differ materially from
management's projections, forecasts, estimates and expectations may include
factors that are beyond the ability of the companies to control or estimate
precisely. Factors include, but are not limited to, actions in the financial
markets, actions of regulatory agencies, weather conditions, economic conditions
in the companies' service territories, fluctuations in energy-related commodity
prices, conversion activity, other marketing efforts and other uncertainties.
Other risk factors are detailed from time to time in the companies' SEC reports.


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Contacts:

Investor Relations, Bob Drennan, 919.546.7474
Corporate Communications, Keith Poston, 919.546.6189 or toll-free
877.641.NEWS(6397)