8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 2, 2006

(Commission File Number)	Exact names of registrants as specified in their charters, address of principal executive offices, telephone number and state of incorporation	(IRS Employer Identification No.)
1-15929	PROGRESS ENERGY, INC.	56-2155481
	410 S. Wilmington Street
	Raleigh, North Carolina 27601-1748
	Telephone: (919) 546-6111
	State of Incorporation: North Carolina

None

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

SECTION 2 - FINANCIAL INFORMATION.

Item 2.01 Completion of Acquisition or Disposition of Assets.

On October 2, 2006, Progress Energy, Inc. (the “Company”) completed the sale of Winchester Energy and its associated natural gas businesses to a wholly-owned subsidiary of Texas-based EXCO Resources, Inc. for approximately $1.16 billion in cash (subject to customary closing and post-closing adjustments).

Assets divested by the Company include its holdings in Winchester Energy, Winchester Production Company, Westchester Gas Company, Texas Gas Gathering and Talco Midstream Assets. Specific assets include over 325 Bcfe of proved natural gas reserves, over 350 miles of natural gas pipelines, over 500 producing natural gas wells and other related assets, all of which are located in east Texas and Louisiana.

The Company’s press release relating to the completed sale is furnished as Exhibit 99.1 hereto.

SECTION 9 - FINANCIAL STATEMENTS AND EXHIBITS.

Item 9.01 Financial Statements and Exhibits.

(c)   Exhibits

99.1Press Release of Progress Energy, Inc. dated October 2, 2006.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PROGRESS ENERGY, INC.
	Registrant
By:	/s/ Jeffrey M. Stone
	Jeffrey M. Stone
	Chief Accounting Officer

Date: October 4, 2006

EX-99.1

Exhibit 99.1

Progress Energy completes sale of natural gas assets

RALEIGH, N.C. (October 2, 2006) - Progress Energy [NYSE: PGN] today announced completion of the sale of Winchester Energy and its associated natural gas businesses to a wholly owned subsidiary of Texas-based EXCO Resources Inc. for approximately $1.16 billion in cash (subject to customary closing and post-closing adjustments).

As announced in July, net proceeds from the sale will be used to reduce debt.

“Completing this transaction is a significant step toward accomplishing our goal of reducing debt at the holding company level by $1.3 billion by the end of 2007,” said Bob McGehee, chairman and CEO of Progress Energy. “This was the right time for our company to exit the gas exploration and production business. We were able to capitalize on favorable market conditions while substantially increasing value over the invested capital and lowering the company’s risk profile.”

The sale includes Progress Energy’s holdings in Winchester Production Company, Westchester Gas Company, Texas Gas Gathering and Talco Midstream Assets. Specific assets include more than 325 Bcfe of proved natural gas reserves, more than 500 producing wells and more than 350 miles of pipelines and gathering lines and other related assets, all located in east Texas and Louisiana.

Progress Energy, headquartered in Raleigh, N.C., is a Fortune 250 diversified energy company with more than 23,000 megawatts of generation capacity and $10 billion in annual revenues. The company's holdings include two electric utilities serving approximately 3 million customers in North Carolina, South Carolina and Florida. Progress Energy’s nonregulated operations include energy marketing. Progress Energy is the 2006 recipient of the Edison Electric Institute's Edison Award, the industry's highest honor, in recognition of its operational excellence. In 2005, the company also received the prestigious J.D. Power and Associates Founder's Award for dedication, commitment and sustained improvement in customer service. For more information about Progress Energy, visit the company's Web site at progress-energy.com.

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This document contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements involve estimates, projections, goals, forecasts, assumptions, risk and/or uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements.These and other risk factors are detailed from time to time in our SEC reports.

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