RALEIGH, N.C. – Shareholders of Progress Energy Inc. (NYSE: PGN) have overwhelmingly approved the proposed merger with Duke Energy (NYSE: DUK).

At a special shareholders’ meeting held on Tuesday morning in Raleigh, more than 95 percent of the Progress Energy shares voted were in favor of the merger. Most votes had been cast in electronic balloting in the last several weeks, with some shareholders voting at the meeting on Tuesday.

In a separate meeting in Charlotte on Tuesday, Duke Energy’s shareholders also approved the merger.

Under the merger agreement announced Jan. 10, 2011, and approved on Tuesday, each share of Progress Energy’s common stock will be converted into 2.6125 shares of Duke Energy common stock upon closing of the merger, to be adjusted for the reverse stock split approved by Duke Energy shareholders on Tuesday.

The companies expect the merger to close by the end of the year.

“Progress Energy and Duke Energy have rich, century-long traditions of success as independent companies,” said Bill Johnson, the Progress Energy chairman, president and CEO who will become CEO and president of the combined company. “Our shareholders agree that combining them will make for an even stronger company – one equipped to meet the significant energy challenges ahead with enhanced value to our shareholders while meeting our customers’ needs reliably, affordably and in an environmentally sound manner.”

If approved by state and federal regulators, the combined company will be the country’s largest electric utility, with:

• Approximately $65 billion in enterprise value and $37 billion in market capitalization.
• The country’s largest regulated customer base, providing service to approximately 7.1 million electric customers in six regulated service territories – North Carolina, South Carolina, Florida, Indiana, Kentucky and Ohio.
• Approximately 57 gigawatts of domestic generating capacity from a diversified mix of coal, nuclear, natural gas, oil and renewable resources.
• The largest regulated nuclear fleet in the country, with 12 reactors at seven sites.

Planning for the integration of the companies is under way, with leaders from both companies assuming key management roles in the new organization.