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The company submitted its application to the U.S. Department of Energy (DOE), which will award $4.5 billion in Smart Grid grants nationwide as part of the American Recovery and Reinvestment Act of 2009.

"Smart Grid" is a term used to describe a modernized electric transmission and distribution system -- enabled by digital technology -- that delivers detailed, real-time information about energy use to customers.

This advanced, state-of-the-art grid will allow utility companies and consumers to continuously monitor and adjust their electricity use, while providing a pricing and control system to flexibly integrate new renewable energy resources such as solar and wind power, energy storage devices and electric vehicles. A smarter grid also will help minimize interruptions in electrical service during storms and other routine power outages.

Progress Energy is already investing a planned $320 million in Smart Grid to enhance the electricity delivery system at the company's two electric utilities: Progress Energy Carolinas and Progress Energy Florida. If approved, the $200 million DOE grant would be shared equally on Smart Grid projects in the Carolinas and Florida and would advance additional Smart Grid investments.

"Smart Grid will enable us to enhance and improve service to our customers," said Bill Johnson, chairman, president and CEO of Progress Energy. "It will allow our customers ultimately to have more direct control of their energy use and their bill through pricing signals and pre-pay options. Leveraging this technology, Progress Energy will partner with our customers to help them manage their usage based on personal preferences and household needs. The end result will be improved system efficiencies, energy conservation and a cleaner environment."

Progress Energy is a fully integrated utility, so it can leverage the value Smart Grid offers all the way from its generating plants, across its transmission and distribution systems to its customers' homes and businesses. The company maintains a network of about 11,000 miles of electric transmission lines and 100,000 miles of distribution lines across 54,000 square miles in the Carolinas and Florida.

"Smart Grid will enhance power quality and service reliability while helping us secure the energy future for our customers," Johnson said.