Nuclear generating units are projected to be in service at Levy in the 2016 to 2018 timeframe
– By April Murelio –
Progress Energy has a clear strategic focus and a flexible, balanced plan for delivering value for its customers and shareholders, Chairman, President and CEO Bill Johnson told financial analysts at a meeting in New York.
"Our strategic focus provides clarity and flexibility in a world filled with ambiguity and constraints," Johnson said. "A key element of the company's strategic approach is to achieve our financial objectives year after year while continuing to excel in the operational fundamentals of our business."
Lloyd Yates, president and CEO of Progress Energy Carolinas, and Jeff Lyash, president and CEO of Progress Energy Florida, reviewed the utilities' performance in 2008. Lyash also provided an update of the Levy nuclear project. In December 2008, Progress Energy Florida signed an agreement with Westinghouse and The Shaw Group, for the engineering, procurement and construction of two advanced-design, 1,105-net megawatt nuclear reactors proposed in Levy County, Fla. The utility is negotiating joint ownership with multiple parties. The nuclear generating units are projected to be in service at Levy in the 2016 to 2018 timeframe.
Johnson said the company's strategy enables Progress Energy to be agile and proactive in adapting to the new energy and economic realities facing the industry and nation. The company's fundamentals remain strong.
"We have solid growth prospects, financial strength and flexibility, and an attractive dividend yield and long record of dividend growth," Johnson said.
The company's two electric utilities – Progress Energy Carolinas and Progress Energy Florida – serve approximately 3.1 million customers. Both utilities rank in the top-quartile in business customer satisfaction, and Progress Energy Carolinas ranks No. 1 in the South.
"It all starts with our basic core mission, our responsibility to provide reliable, affordable energy for our customers," Johnson said. "We always seek to align our plans and interests with our customers' long-term needs and interests. That's one reason why we work so closely with regulators to develop a clear mutual understanding of where we are going and why, and the implications for customers."
The company is pursuing a balanced energy strategy to meet the challenges of demand growth, climate change and energy security. The key elements of the strategy are aggressive energy efficiency, innovative alternative and renewable energy, and state-of-the-art generating plants.
Progress Energy met its earnings guidance for 2008 through aggressive cost management and timely action to mitigate soft retail sales due in part to the economic recession. In December, the company's board of directors approved a dividend increase for the 21st straight year.
"Reliability is a hallmark of this company, whether that is delivering power and service to customers or dividends and returns to investors," Johnson said.
Mark Mulhern, chief financial officer, discussed details of the company's financial objectives, projected capital expenditures and cash-flow estimates.
"We are continuing to deliver on our strategy to generate solid earnings growth through our two utilities," Mulhern said. "Based on our business plan for 2009, we have set an ongoing earnings target of $2.95 to $3.15 per share. Given the nation's economic recession, this is a challenging goal, but one that is achievable, if we continue to manage our regulated electric utility business effectively."
John McArthur, executive vice president of Administration and Corporate Relations for Progress Energy, discussed federal energy policy and potential energy legislation in 2009.