Progress Energy has been looking to buy a stake in two proposed nuclear reactors in South Carolina as the Raleigh-based power company considers options to finance nuclear expansion.

Progress CEO Bill Johnson told reporters at Bloomberg News yesterday that Progress has discussed buying a stake in two proposed reactors about 25 miles northwest of Columbia. The project is jointly owned by the Scana Corp. and Santee Cooper, the state-owned electric utility that has publicly said it's looking to sell off some of its share in the project.

Johnson made the comments in New York, where he spoke at a nuclear industry conference and made a series of media appearances.

Those discussions are consistent with Progress's approach to nuclear expansion based on joint financing or co-ownership. Progress spokesman Mike Hughes would not say if Progress is still interested in joint ownership of the $9.1 billion V.C. Summer nuclear project in South Carolina or if those talks have ended without resolution.

"We certainly have talked with all of our neighbors," Hughes said. "The concept of regional nuclear is a very important one."

The N.C. Society of Engineers' winner of this year's Outstanding Engineer award goes to a Raleigh energy executive who will help lead the nation's biggest electric utility company.

Lloyd Yates, 50, is also the first black engineer to win the Outstanding Engineer award since the professional society began giving out its annual award in 1937.

Yates, currently President and CEO of Progress Energy Carolinas, oversees the Raleigh-based power company's operations for 1.4 million customers in the two states.

Last week, Progress CEO Bill Johnson put Yates in charge of Customer Operations for an expanded Duke Energy, the Charlotte utility that announced Jan. 10 that it's merging with Progress to form the nation's biggest utility company with 7.1 million customers.

Johnson will be CEO of Duke once the merger is completed. Yates' selection to the executive team signifies he's one of Johnson's trusted associates. Duke has named five of its executives to the combined senior executive team.

The message from Progress Energy CEO Bill Johnson to his jittery employees can be boiled down to: focus on your job and safety, change happens, be patient, trust me and I don’t know.

Plus: Do not talk to employees at Duke Energy.

Johnson did his best to calm, cajole and motivate about 1,500 Progress employees on Wednesday, two days after Raleigh-based Progress announced it would merge with Charlotte-based Duke to form the nation’s largest utility company. Hundreds of positions will likely be eliminated in Raleigh and in Charlotte as the two electric utilities consolidate operations to trim operating costs.

“For the majority, the vast majority of employees, this is a better opportunity,” Johnson assured his utility troops, according to a transcript of the meeting Progress filed with the Securities and Exchange Commission. “You get to grow your career in a bigger, more robust company, right? … Those are facts.”

Some additional information about Progress Energy's downtown real estate.

The company leases roughly 750,000 square feet in its two buildings.

In its headquarters building on Fayetteville Street, Progress leases 386,915 square feet. The lease on that space expires in November 2013, and the company has an option to extend the terms by 10 years.

In Two Progress Plaza, the newer building that was completed in 2005, Progress leases 365,125 square feet.

That lease doesn't expire until 2035.

Given the lease terms, it's likely that any initial reductions in Progress' footprint downtown will occur in its building on Fayetteville Street.

The merger with Duke Energy isn't expected to be completed until the end of the year, which means Progress may not find itself in the unenviable position of trying to sublease a large chunk of space for a long period.

Duke Energy CEO Jim Rogers ventured into enemy territory when he first met with his counterpart at Progress Energy to discuss a merger.

After Rogers called to suggest they talk about ways they might work together, Progress CEO Bill Johnson set up the July dinner at the Washington Duke Inn, on the campus of Duke University.

Rogers jokingly suggested during an interview with editors at The News & Observer Wednesday that Johnson had picked a site that would put him at a disadvantage.

Rogers is a University of Kentucky alumnus and a big basketball fan who still holds a grudge over the last-second shot the Blue Devils' Christian Laettner hit in a 1992 tournament game to beat UK.

"It's bad enough running a company called Duke," Rogers said, laughing.

Progress Energy CEO Bill Johnson, who will become CEO of the combined utility when Duke Energy buys Progress, will make a base annual salary of $1.1 million.

He also will be eligible for bonuses worth up to $6.7 million, and various other perks under Duke's compensation policy, including use of the corporate aircraft. The companies disclosed some details of Johnson's three-year employment agreement in a filing with the Securities and Exchange Commission today.

Johnson, 57, also will be reimbursed for expenses related to his relocation to Charlotte.

The top boss at Progress Energy will meet with employees on Wednesday morning in Raleigh to discuss the utility's proposed union with Duke Energy.

The meeting with Progress CEO Bill Johnson was scheduled for today, but was delayed because of the winter weather. Spokesman Mike Hughes declined to comment on where or when the meeting will happen.

On Thursday, Johnson and Duke CEO Jim Rogers will meet with workers in downtown Charlotte. That meeting is scheduled to be held from 2 to 3 p.m. at the Knight Theater in Charlotte, the companies reported in a filing with the Securities and Exchange Commission today.

Johnson and Rogers need support among the companies' thousands of workers, even though employees face several years of uncertainty about their future.

Duke Energy will be required to pay Progress Energy a breakup fee of $675 million if it backs out of its deal to buy the Raleigh-based utility.

Such fees are common with major corporate mergers, and are designed to include a financial incentive to keep the deal on track. The fees help cover legal costs and other expenses if a proposed union is terminated.

Progress will owe Charlotte-based Duke a $400 million fee if it accepts another offer or backs out of the Duke deal.

The companies disclosed the breakup fees in a filing with the Securities and Exchange Commission.

The CEOs of Duke Energy and Progress Energy wouldn't comment on how many jobs might be eliminated as the companies merge, but said that they don't expect many forced layoffs, staff writer John Murawski reports.

"We're going to rely on attrition, retirements to take care of most of this," said Progress CEO Bill Johnson, who will be chief executive of the combined company.

Johnson and Duke CEO Jim Rogers, who will become chairman of the new company, said on a conference call that they won't have details on cost-cutting goals for some time. They expect to win shareholder and regulatory approvals for the deal by later this year.

Duke Energy announced this morning that it will buy Progress Energy in a all-stock deal worth about $26 billion, creating the largest electric utility in the nation with 7.1 million customers.

The expanded company will keep Duke's name and corporate identity. It will remain headquartered in Charlotte, boosting that city's profile as the state's business and finance capital, but "maintain substantial operations in Raleigh," the companies said.

The deal will result in Raleigh losing a Fortune 500 corporate headquarters when Progress ceases to exist as an independent company after 102 years of continuous operation. The union is expected to bring job cuts as the companies look to save money by consolidating operations, but could result in lower rates for customers.

Progress CEO Bill Johnson will become CEO of the combined company, while Duke CEO Jim Rogers will serve as chairman.