Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

On December 10, 2008, the Board of Directors of Progress Energy, Inc. (the "Company") amended the Company's Supplemental Senior Executive Retirement Plan (the "Plan"), a supplemental, unfunded pension benefit plan in which officers participate who would be considered "named executive officers" of the Company for Securities and Exchange Commission reporting purposes.

The Plan was amended to reduce the target benefit percentage for participants who enter the Plan on and after January 1, 2009. Monthly payments under the Plan currently are calculated using a formula that equates to 4 percent (4%) per year of service (capped at 62 percent (62%)) multiplied by the average monthly eligible pay for the participant's highest completed 36 months of eligible pay. The amendment reduces the target benefit percentage from 4 percent (4%) per year of service to 2.25 percent (2.25%) for new Plan participants.

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