Sweet jeebus that's good news.  Say what you will about his coaching style, because whatever it is leads up to the results. 

“Michel has done a tremendous job with our team over the past two-and-a-half seasons, developing our young players while leading us to division and conference championships and the Stanley Cup finals,” Shero said. “He had one year remaining on his previous contract, and we could have simply talked about an extension. But we thought that, based on the success we’ve had together, it was time to negotiate a new deal, starting with an increase in compensation for the 2008-09 season.”

Penguins website

I don't think any of us saw Therrien going anywhere.  A three-year deal is just about right for a coach in my mind, as it's the perfect amount of time for him to prove to the city, the team and the upper echelons of power in the front office that he's the best man for the job. You'd have to hope that with a berth in the Finals this season combined with the slick moves in the offseason to keep the team in tact that the city is due for a Cup within the next three.

Therrien's all business:

“I’m excited to have a new three-year contract with the Penguins and am looking forward to continued success here in Pittsburgh,” Therrien said. “It is a great hockey city with an outstanding fan base. All of our players comment on how much they love playing in Pittsburgh, and I can tell you that our coaches love coaching in Pittsburgh.

 “We still have a lot of work to do, though, because we fell short of our biggest goal last season. Our goal is, and always will be, to win the Stanley Cup."

Therrien has successfully coach the Penguins to two-straight playoff appearances in the last two of his three years as coach.  In each of those seasons the Pens mustered up 102 and 105 points, respectively. 

Good news for the Pens and fans.