Progress Energy Inc. (PGN) provided 2010 earnings and lowered its 2009 guidance, due to the lingering effects of the economic recession and the recent unfavorable regulatory decision.

The company expects 2010 earnings to be in the range of $2.85 to $3.05, which reflects the adjusted retail revenue expectations due to the challenging economy in Florida and the results of the decision in the company’s Florida rate case.

Last week, the Florida regulators unanimously rejected a $500 million annual base rate increase sought by Progress Energy Florida. The commission also reduced the utility’s return on equity from the requested 12.54% to 10.50%. The company deplored that the rate case decision failed to recognize the real-time costs associated with providing a secure and reliable electricity system. This decision will require the company to take a call on various issues related to its operating and maintenance costs and capital expenditures.

The company also lowered its 2009 earnings guidance to a range of $3.00 to $3.05 from its previous guidance range of $2.95 to $3.15.

Progress Energy is scheduled to announce its fourth quarter and year-end 2009 earnings results on February 11, 2010.

Based in Raleigh, North Carolina, Progress Energy engages in the generation, transmission, distribution and sale of electricity in North Carolina, South Carolina, and Florida. It has more than 22,000 megawatts of generation capacity and generates $9 billion in annual revenues. Progress Energy includes two major electric utilities that serve approximately 3.1 million customers in the Carolinas and Florida. It serves more than 1.6 million homes, businesses and other customers in central and north Florida.

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