Exhibit 10

                        AMENDMENT TO EMPLOYMENT AGREEMENT
                                     Between
           PROGRESS ENERGY SERVICE COMPANY, LLC AND PETER M. SCOTT III

     This  AMENDMENT  TO  EMPLOYMENT  AGREEMENT  ("Amendment")  dated  as of the
___5th____ day of August,  2005,  between Progress Energy Service  Company,  LLC
("PESC"),  formerly  known as CP&L  Service  Company,  and  Peter M.  Scott  III
("Scott"),  serves  to amend  the  Employment  Agreement  Between  CP&L  Service
Company,  LLC and  Peter  M.  Scott  III,  dated  August  1,  2000  ("Employment
Agreement") for the time period stated herein.

                                     RECITAL

     WHEREAS,  PESC  recognizes  that,  in  March of 2005,  Scott  was  assigned
increased  responsibilities in his role as President and Chief Executive Officer
of PESC and PESC  wishes to  provide  Scott with an  incentive  to remain in the
employ of PESC until April 1, 2008.

                                   PROVISIONS

     NOW,  THEREFORE,  in  consideration  of the mutual  covenants  and promises
contained herein and for other good and valuable consideration,  the receipt and
sufficiency  of which is hereby  acknowledged  and accepted,  the parties hereto
hereby agree as follows:

     1. Incentive  Payments.  Subject to the conditions set forth in paragraph 2
of this Amendment and contained herein, PESC agrees to the following:

          a. For the plan years 2005, 2006 and 2007, PESC will increase  Scott's
     target award  percentage for  performance  shares  granted  pursuant to the
     Performance  Share  Sub-Plan  ("PSSP") of the  Progress  Energy 2002 Equity
     Incentive  Plan.  The  increased  target is 165% of Scott's base salary for
     each respective year.

          b. PESC  agrees to pay for  restricted  stock  awarded to Scott in the
     years  2005,  2006  and 2007  under an  increased  restricted  stock  award
     percentage of 85% of Scott's base salary during each respective year.

          c. PESC  acknowledges  that Scott will continue to  participate in the
     Amended Management Incentive Compensation Plan of Progress Energy, Inc., as
     amended   January   1,  2005   ("MICP"),   a  cash  bonus   plan,   at  the
     President/Executive  Vice  President  target award level,  and PESC further
     acknowledges that, at the time of each annual review of MICP awards for the
     years 2005, 2006 and 2007, the Chief Executive  Officer of Progress Energy,
     Inc. will consider exercising his discretion under the plan to increase the
     awards  to  Scott.  If  the  Chief  Executive  Officer  determines  in  his
     discretion  that  an  increase  in  the  MICP  award  is  justified  by the
     performance  of Scott,  the amount of the award will be based upon a target
     award equal to 63% of the base salary of Scott for the year.

          d. PESC agrees that should Scott continuously  remain in the employ of
     PESC or any other subsidiary of Progress Energy,  Inc. until April 1, 2008,
     or should Scott's employment terminate, at any time, under paragraphs 6(a),
     6(e) or 6(f) of the Employment  Agreement,  then, at PESC's option,  either
     Scott's PSSP grants for the 2006 and 2007 plan years and/or any  restricted
     stock awards granted to Scott in 2005, 2006 and 2007 will vest  immediately
     upon his employment  termination date,  provided the Progress Energy,  Inc.
     2002 Equity  Incentive Plan (Amended and Restated  Effective July 10, 2002)
     and its exhibits permit such vesting, or PESC will pay Scott the equivalent
     cash value of the PSSP grants  and/or  restricted  stock  awards as of that
     date. The number of shares to be vested under the PSSP upon the termination
     of Scott,  if any, will be subject to the adjustment  provided in the event
     of early vesting under the PSSP.

     2. Limitations on Acceleration of Vesting  Schedule and/or  Equivalent Cash
Payment.  Should  Scott's  employment  terminate  prior to April 1,  2008  under
paragraphs  6(b),  6(c) or 6(d) of the Employment  Agreement,  Scott will not be
entitled to the accelerated  vesting  schedules  and/or  equivalent cash payment
described in paragraph 1(d) of this Amendment.

     3. Employment Relationship.  Nothing in this Amendment shall change the "at
will" employment  relationship  between Scott and PESC. Scott  acknowledges that
this  Amendment  does not  constitute a contract for employment for any specific
term or fixed period of time and that PESC  retains the right to  terminate  the
employment  of Scott at any  time,  with or  without  cause,  subject  to PESC's
obligation to provide benefits hereunder and under the Employment Agreement.

     4.  Confidentiality.  The  terms  and  provisions  of  this  Amendment  are
confidential  and shall not be  disclosed  by Scott to third  parties  except as
required  by law.  Notwithstanding  the  above,  Scott may  reveal the terms and
provisions of the Amendment to immediate family members,  to legal counsel or to
a  financial   advisor   provided  that  such  persons  agree  to  maintain  the
confidentiality of this Amendment.

     5.  Governing Law. This Amendment will be governed by North Carolina law to
the extent not preempted by federal law.

     6. Term of  Amendment.  This  Amendment  will  terminate  on the earlier of
Scott's  termination  of  employment  prior to April 1, 2008,  or pay out of all
vested PSSP grants and/or vested restricted stock awards.

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     7.  Severability.  If any provision of this Amendment is deemed by any law,
regulation,  ordinance  or order by any court of  competent  jurisdiction  to be
unlawful,  invalid, void or otherwise unenforceable,  the rights and obligations
of the Parties shall be reduced or abated only to the extent  required to remove
or cure such illegal or unenforceable  portion,  so long as the Amendment is not
affected in a manner or to the extent  which  would  render it  economically  or
materially infeasible to either Party.

     8. Effect of Amendment on Employment  Agreement.  With the exception of the
payments,  terms and time periods  discussed in this  Amendment,  payment of the
Incentive  Payments and the terms of this Amendment do not otherwise  modify the
Employment Agreement.

     9.  Entire   Agreement.   This  Amendment   shall   constitute  the  entire
understanding between the Parties relating to the subject matter hereof.

     10. Additional  Amendments.  No statements or agreements,  oral or written,
made prior to the date hereof,  shall vary or modify the written terms set forth
herein, and neither Party shall claim any additional amendment,  modification or
release  from any  provision  hereof  by  reason of a course of action or mutual
agreement  unless  such  agreement  is in  writing,  signed by both  Parties and
specifically states it is an additional amendment to this Amendment.


     IN WITNESS WHEREOF the parties have entered into this Amendment.

Progress Energy Service Company, LLC        Peter M. Scott III

By: /s/ Peter M. Scott III                  By:  /s/ Robert B. McGehee
   ------------------------                     ----------------------
   Peter M. Scott III                           Robert B. McGehee
   President and CEO, Progress Energy           Manager of Progress Energy
     Company LLC                                   Service Company, LLC
                                                Chairman and CEO, Progress
                                                   Energy, Inc.
Dated: August 4, 2005                           Dated:  August 5, 2005


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