As of December 31, 2009, PGN’s common equity ratio was 42.7% of total capitalization, which marks a significant improvement from 35% in 2000 (following the acquisition of Florida Progress).  Over the long term, the Company intends to maintain a common equity ratio in the mid-40% range.

PGN expects to issue up to $500.0 million of equity in 2010 through its DRIP and Investor Plus plan.

Management reaffirmed its commitment to the dividend despite the possibility of flat to lower earnings in 2010.  The Company also remains committed to achieving a long-term 70%-75% dividend payout ratio.

Capital Expenditure

PGN updated its 2010-2012 capital expenditure budget to $6.07 billion, including $2.16 billion in 2010, $2.11 billion in 2011, and $1.8 billion in 2012.  Notably, the revised budget effectively shifted capital investments to 65% Carolina rate base and 35% Florida rate base from previous estimates, which allocated more than 50% to Florida. The allocation shift was partly due to completion of scrubber installation at Crystal River 4 and 5 as well as the nuclear up-rate and the steam generator replacement at CR3.  In addition, the capital investment shift is a function of a more favorable investment climate in the Carolinas.