Progress Energy 2004 Annual Report Download - page 6

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4
Investing in Utilities and Controlling Costs – We continue to invest nearly $1 billion of capital each year in
our two electric utilities to serve new retail customers and growing demand. We now have almost 3 million
customers in our two service areas, which are among the most attractive locations in the country.
In 2004, we began building the third generating unit at our Hines Energy Complex in Polk County, Fla.
The unit is scheduled for service in December 2005. Also last year, we received a 20-year license extension
for our Robinson Nuclear Plant in Darlington County, S.C., and this year we will complete a four-year
program to boost nuclear production capacity at our existing plants. In addition, we’re expanding our
transmission system and distribution facilities at both utilities to ensure continued reliability.
Cost management is central to our strategic plan. We began an initiative in late 2004 to eliminate
$75 million to $100 million in projected growth of annual nonfuel operating costs by the end of 2007. As
part of this effort, we launched a companywide organization study to be completed in 2005. It includes
a streamlined management structure and a voluntary early retirement program.
Keeping an Eye on Results that Matter – At Progress Energy, we’re staying focused on achieving five
key results that matter for our long-term success:
• excellence in business operations
• loyal and satisfied customers
• good value to investors
• motivated and productive employees
• exemplary corporate citizenship
As important as it is to meet financial objectives and investor expectations, we must pay close attention
to all of these vital areas. For example, in finding ways to reduce costs, we will not take short-sighted
actions that compromise safety or service or the high-performance culture we’re building here.
And we know it ultimately benefits us as well as our neighbors when we give back to the communities
we serve. We do this by supporting a variety of community initiatives in education, the environment and
economic development.